Zoe Foster Blake has re-acquired BWX's 50.1% stake for $21.8 million, which is less than a quarter of what she received 2 years ago.
👉 Background: Zoe Foster Blake is a former writer and beauty blogger who became somewhat of a makeup influencer. In 2014, she started a skincare brand called Go-To Skincare with the idea of selling luxury skincare products at affordable prices.
👉 What happened: Over the past 9 years, the brand grew rapidly. In 2021, then-ASX-listed cosmetics brand BWX acquired a 50.1% stake in Go-To Skincare for $89 million. But when BWX went into voluntary administration, its administrators needed to sell off all of their assets - including Go-To Skincare.
👉 What else: Now, Zoe Foster Blake has re-acquired BWX's 50.1% stake for $21.8 million, which is a less than a quarter of what she received 2 years ago. But when a business has founder dependence, it becomes hard for a company to sell it to anybody else.
💡Founder dependence refers to a company's heavy reliance on its founder for success. And, this dependence can be a double-edged sword.
💡On the one hand, founders often bring the passion, deep knowledge, and even a public image to promote the brand. 70 per cent of Go-To's social media following is from Foster Blake's personal Instagram account.
💡But on the other hand, an over-reliance on the single person can pose significant risks. Go-To's success is tightly intertwined with Zoe Foster Blake's personal brand and social media influence. So, it meant that no deal could be signed off without her blessing.
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